Investors are slowly pulling back from the property market - three weeks on from the Government's housing announcement.

The new policies include removing interest deductibility for investors.

In a survey by economist Tony Alexander, a net 10 per cent of respondents say they plan on cutting back their purchasing of investment property.

Ray White CEO Carey Smith told Heather du Plessis-Allan they're seeing a similar situation.

"Investors are reassessing, particularly new investors, the various impacts that the government's policies have." 

He says that the first-home buyers market is looking encouraging, but they might be an unintended target.

"A lot of those first-home buyers may get caught up in the investment policy, as a lot of them don't buy where they live.

"Around 50 percent of first-home buyers are actually investors."

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